Mandates that any surplus state tax revenue received in any fiscal year would be refunded to the taxpayers of this state on a proportional basis in relation to the personal income tax liability incurred by the taxpayers in that fiscal year.
Impact
Should S0107 pass, it will amend Title 44 of the General Laws in Rhode Island, specifically adding a new chapter that establishes the rules governing the Surplus Funds Tax Credit. This act will enforce a mechanism for determining the excess state revenues and ensure that these funds are not retained by the state for other uses, instead mandating that they go directly back to taxpayers, effectively reducing their tax liabilities.
Summary
S0107, known as the Surplus Funds Tax Credit Act, proposes a new framework for handling excess state tax revenues that exceed projections. Under this act, any surplus funds collected in a given fiscal year would be credited back to taxpayers in proportion to their personal income tax liabilities from the previous taxable year. The intention behind this bill is to ensure that tax revenues are returned to the citizens, particularly in years when the state experiences budget surpluses.
Contention
There may be points of contention regarding how this act could impact the state’s budgeting process. Critics may argue that automatically refunding surplus revenues could complicate budget planning and allocation for essential state services. Furthermore, discussions may arise around whether the formula for distributing the credits is fair or efficiently manages taxpayer expectations regarding future tax liabilities. Proponents, however, could view this as a necessary step toward greater transparency and fiscal responsibility in state finances, reinforcing the democratic principle that taxpayers should benefit from government surpluses.
Mandates that any surplus state tax revenue received in any fiscal year be refunded to the taxpayers of this state on a proportional basis in relation to the personal income tax liability incurred by the taxpayers in that fiscal year.
Mandates that any surplus state tax revenue received in any fiscal year be refunded to the taxpayers of this state on a proportional basis in relation to the personal income tax liability incurred by the taxpayers in that fiscal year.
Provides, for the tax year 2023 and thereafter, that any tax overpayment would be refunded with interest calculated at twelve percent (12%) compounded daily if not received by the thirtieth day of June in the subsequent year.
Establishes the Rhode Island low-income housing improvement tax credit program providing tax credits for a period of five (5) years to applicants that are competitively selected and that meet the requirements of this chapter.
Establishes the Rhode Island low-income housing improvement tax credit program providing tax credits for a period of five (5) years to applicants that are competitively selected and that meet the requirements of this chapter.